USE AND APPLICATION OF SELECTIVE INVENTORY CONTROL MODEL IN A TRACTOR TRAILER MANUFACTURING PLANT

Abstract

This paper describes an Application of Selective Inventory Control Model in a Tractor Trailer Manufacturing Plant. Incorporation of the appropriate inventory management system plays an important role in determining the financial health of a manufacturing company. In most of the cases, unjustified inventory of raw materials is kept causing certain loss to the company. Keeping the above in mind, in the present work, a task is undertaken to find out relevant items that need stringent inventory management in one manufacturing company. Based on the demand pattern of spare parts different inventory control models are proposed. Since it is difficult to apply a proper inventory control model for each item separately because of its huge variety, it is necessary to find out few significant items using 'Selective Control' method. ABC and VED analyses are performed. The major thrust of the work is on inventory control of A and B class Vital and Essential items. The model used for the different categories are Periodic Review Model and Continuous review model. The analysis of the effectiveness of the proposed inventory control model against the present inventory control system is done.